QE2's End, Dollar's Rise? Perhaps

The dollar could get a boost form the end of quantitative easing, this strategist says - but whether it will last is another question.

Westpac has been selling the dollar against a number of higher risk currencies, says Sean Callow, senior currency strategist for Westpac Bank. Westpac did take some profits on its negative exposure to the dollar index this past week, Callow told CNBC, but noted that Treasury yields are still extremely low, which can't be good for the currency.

How the End of QE2 Will Affect the US Dollar

Sean Callow, senior currency strategist at Westpac Bank, says the end of Federal Reserves buying in the second round of quantitative easing will cause a rise in prices of treasury yields, which are now at their lowest since the Japan disaster.

So what's next for the dollar?

"There will be a lot of nerves around the end of QE2," Callow says.

"You would think it would be potentially somewhat supportive for the U.S. dollar."

But be careful: absent stronger economic data, Callow believes any positive impact will be less sustainable.